Going for AAA graphics just doesn't make sense from a money making perspective, which is what Nintendo thinks about. I mean, its crazy that Nintendo has earned more profits during the Switch era than Sony Playstation has earned in 30 years from gaming. Graphical power race is simply a dead end from a profit perspective.

This. If Xbox and PlayStation completely dropped specs and PS6 was barely above a PS5 Pro and Xbox 5 was barely above PS5 Pro as well it might spell the death of both. Xbox isn't in great shape, but Microsoft Gaming is.

Nintendo doesn't need the specs, that died with Wii as a homerun after GameCube was their least popular home console to date. 

Considering how well the Switch worked out for Nintendo, I would like for them to stick to that approach.

Oh if we're talking about just a home version of the Switch then I agree completely that it would make a lot of sense.

I was just referring to the scenario outlined in the OP; a console that's power-competitive with PS/Xbox.

There's no point trying to have a rational discussion with him, he's just trolling.

I don't think anyone considers the Switch a "monstrous and powerful console" considering its power is somewhere in between the Xbox 360/PS3 and Xbox One/PS4 with it being closer to the former. Even with its lack of hardware strength compared to the competition, it's still a very successful console for Nintendo with its exclusives and the third party support it has gotten over the past 7 years. That being said, with the Lite being the exception, the Switch family is both a home and a handheld console. Hence why its considered a hybrid.

More power would be helpful and there is a time where it's needed, but it cannot be something to be so overreliant on and doesn't really mean that much if a game isn't made well or is unpolished.

The Switch makes the most sense, purely because Nintendo has always ruled the handheld arena since the GameBoy; remember that plenty rival handhelds since then have (and still do today) easily outmatched Nintendo's handheld offerings on the power front but only the PSP put up a decent fight, and it still got massively outsold 2 to 1 by the DS family.

Even the worst-selling Nintendo handheld to date (since Nintendo lumps GB+GBC sales together) still clobbered Vita by an even bigger percentage than DS did to PSP.

Sony was probably twirling their mustaches when 3DS stumbled out of the gate. But once Nintendo took the bold price cut in Autumn 2011 followed by Super Mario 3D Land and Mario Kart 7 in Holiday 2011, Vita's problems as it launched became self-evident.

Pokemon X/Y launching to success in October 2013 followed by Sony's own decreasing support for Vita by then effectively killed Vita's hopes of turning things around to become a threat to 3DS.

Nintendo indeed needs handhelds first and foremost. A hybrid that you can use as a home console is appealing but the added bonus. They make their killing in handhelds and handheld software. 

I personally would like to have two separate systems: a handheld and a home console, although I don't see the PS5/Xbox route with power a sustainable model.

However, out of those two options, Switch is the better one.

I trust Nintendo enough to just go with whatever they decide to do. I love the Switch the way it is because even though I prefer playing on a TV, the portability eventually came in handy since I travel a lot for work now. As for graphics, it would be great to have Nintendo's games made with more powerful hardware, but we'll get there eventually. Besides, I love the way games look now because of Nintendo's artistic direction. Soon we'll be having a more powerful console and with it more support from third parties with their biggest games that simply don't run on the current Switch. I believe Nintendo was smart to pull back on hardware power back on the Wii days because that allowed them to stay relevant and financially sustainable as technology evolves and gets more expensive, specially since graphics nowadays have a really hard time impressing gamers.

The Switch has only received one big title one big third party title all year. Sonic shadow generations. How can anyone be happy about that and still defend the Switch? These devices are supposed to play games! Why defend a platform that isn't getting games?

I wasn't trolling actually. I just added a little sarcasm but what I said was still the truth. The only big third party game that the Switch has received this year is Sonic shadow generations. You just ran away from me in another thread and won't speak to me since, even though what I said in the other thread was also the truth. I have a thread without about 200 replies in it, so it seems like plenty of other people are willing to engage and talk to me on this platform?